Despite the difficult economic recovery process, Sri Lankan authorities are demonstrating a strong commitment to enacting economic reforms, according to International Monetary Fund (IMF) Deputy Managing Director Kenji Okamura, who just wrapped up his visit to the island nation.
“Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.”
“Sri Lanka’s economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.”
The macroeconomic stabilization, debt sustainability, preservation of financial stability, bolstering of governance, and protection of the vulnerable are the goals of the economic program backed by the IMF.
Okamura expressed his gratitude to Ranil Wickremesinghe, the president of Sri Lanka, as well as other senior government figures, lawmakers, and representatives from the private sector for their constructive conversations that helped him “deepen my understanding of the challenges Sri Lanka is facing and to reiterate the IMF’s commitment to support Sri Lanka’s efforts to overcome these challenges.”
The IMF representative said that he brought up the value of fiscal policies, particularly revenue ones, during the negotiations as a means of restoring macroeconomic stability. “I was heartened by the authorities’ commitment to timely and open debt strategy negotiations.”
Okamura stated that he was amazed by the ongoing economic activity when visiting the dockyard, port terminal, and the port city of Colombo, which is evidence of the resilience of the Sri Lankan economy. He stressed the significance of swiftly putting structural reforms into place that may draw in investment and spur economic development.
“As Sri Lanka navigates its way through the economic crisis, it remains imperative to protect the poor and the most vulnerable that have been disproportionately affected by the crisis. I was heartened to see that the authorities’ have stepped up efforts to increase public spending on social safety nets while improving targeting and coverage for those who need it.”
Recalling the long-standing relations between Sri Lanka and the IMF, Okamura said he looks forward to continued partnership through the EFF-supported economic program.
